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The high - low method: Uses the average and the mean values of costs to determine fixed and variable costs. Uses regression analysis to estimate

The high-low method:
Uses the average and the mean values of costs to determine fixed and variable costs.
Uses regression analysis to estimate total fixed costs and the unit variable costs.
Requires cost items to be specifically classified as fixed costs or variable costs to be utilized.
Uses the high and low values of aggregate costs to estimate total fixed costs and the unit variable costs.

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